KUALA LUMPUR (Nov 23): CIMB Equities Research said Mudajaya’s annualised nine-month core net profit was below expectations, coming in at 82% of its forecast and 90% of consensus.
It said on Wednesday while there was recovery in the contribution from the Indian IPP EP works, contributions from local projects disappointed due to the depletion of domestic jobs.
CIMB Research also said Mudajaya has yet to reach the critical milestone for the newly secured Janamanjung civil works.
“In view of this and currency translation losses, we cut our FY11-13 EPS forecasts by 10%-11%. Despite an unchanged 30% RNAV discount, our target price slips from RM4.81 to RM4.00 as we roll it over and apply a lower CY13 CONSTRUCTION [] P/E of 12.6 times (14.5 times before), in line with our revised target market P/E.
“We remain positive on Mudajaya as project awards are in the offing. Maintain BUY,” it added.
It said on Wednesday while there was recovery in the contribution from the Indian IPP EP works, contributions from local projects disappointed due to the depletion of domestic jobs.
CIMB Research also said Mudajaya has yet to reach the critical milestone for the newly secured Janamanjung civil works.
“In view of this and currency translation losses, we cut our FY11-13 EPS forecasts by 10%-11%. Despite an unchanged 30% RNAV discount, our target price slips from RM4.81 to RM4.00 as we roll it over and apply a lower CY13 CONSTRUCTION [] P/E of 12.6 times (14.5 times before), in line with our revised target market P/E.
“We remain positive on Mudajaya as project awards are in the offing. Maintain BUY,” it added.
